Box completes $460 million convertible note sale due 2029 after option exercise
Box, Inc. sold $400 million of 1.50% Convertible Senior Notes due 2029, and initial purchasers exercised their option in full on September 18, 2024, raising the total to $460 million. The company used part of the proceeds to repurchase $140.0 million of its 0% Convertible Senior Notes due 2026, which adds new debt while reducing older convertible debt.
- Notes bear 1.50% interest and mature September 15, 2029; the notes are convertible at an initial price of about $43.46 per share, a premium of about 30% to the $33.43 closing price on September 17, 2024.
- Net proceeds were about $447.8 million after discounts and expenses; about $52.5 million went to capped call transactions and about $191.7 million to repurchase $140.0 million of 2026 Notes.
- The company may not redeem the notes before September 20, 2027, and holders can require repurchase at 100% of principal upon a fundamental change.